WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Vietnam President seeks parliament approval for EVFTA
Ngoc Thuy 11:02, 2020/05/21
The trade deal with the EU would emphasize Vietnam’s geopolitical significance in the Southeast Asian and Asia – Pacific regions, said Vice State President Dang Thi Ngoc Thinh.

On behalf of Vietnam's President Nguyen Phu Trong, Vice President Dang Thi Ngoc Thinh said the EU – Vietnam Free Trade Agreement (EVFTA) brings mutual benefits for all parties involved, and suggested that the National Assembly (NA) should approve the deal at the earliest possible.

 Vietnam's Vice President Dang Thi Ngoc Thinh suggests the NA to approve the EVFTA and EVIPA. Source: VGP. 

Once the NA ratifies the trade deal, it would  enter into force 30 days after Vietnam and the EU have notified each other that their respective legal procedures have been completed.

Vice President Thinh said the the deal would emphasize Vietnam’s geopolitical significance in the Southeast Asian and Asia – Pacific regions, at the same time heightening the country’s status on the global stage.

Along with the EVFTA, the EU – Vietnam Investment Protection Agreement (EVIPA) is a driving force for Vietnam to finalize its legal framework, with a view to improving the business environment towards greater fairness, transparency and friendliness to investors, Thinh added.

The EVFTA, officially signed last June after six years of negotiations, has been dubbed “the most ambitious” FTA the EU has ever reached with a developing country, according to the European Commission. It not only includes the almost full elimination of bilateral tariffs, but also a substantial reduction of non-tariff barriers. Moreover, it includes provisions to protect intellectual property, labor, environmental standards, and fair competition, while promoting regulatory coherence. 

The EU is one of Vietnam’s largest trade partners with turnover of US$56.45 billion in 2019, of which Vietnam exported goods worth US$41.54 billion and imported goods worth US$14.9 billion.

On March 30, the European Council (EC) adopted a decision on the conclusion of the EVFTA following the ratification by the European Parliament on February 12. This decision cleared the path, on the EU side, for the entry into force of the agreement, said the EC.

A study from Vietnam’s Ministry of Planning and Investment suggested the EVFTA and EVIPA would help Vietnam’s GDP grow an additional 4.6% and boost the country’s exports to the EU by 42.7% by 2025.

Meanwhile, the European Commission estimated the bloc’s GDP would be added US$29.5 billion by 2035, along with additional growth of 29% in exports to Vietnam. 

Regarding Brexit, the government proposed applying the EVFTA with the UK until the end of the transitional period on December 31, 2020, subject to an extension of another 24 months.

Meanwhile, the NA’s Committee for External Relations requested the government to initiate a free trade deal with the UK based on the EVFTA in replacement of the latter eventually, however, there would be adjustment to ensure benefits of the two countries.

RELATED NEWS
TAG: Vietnam EVFTA Southeast Asia Asia - Pacific EU free trade agreement EVIPA Nguyen Phu Trong
Other news
14:03, 2025/02/17
Vietnam set to increase power imports
Vietnam is pushing for double-digit economic growth in the coming years, which is expected to drive annual electricity demand growth of 12-14%.
14:16, 2025/02/15
Vietnam may prioritize economic growth over inflation control: PM
It may be necessary to accept a certain level of higher inflation because injecting more money into business requires this trade-off.
15:52, 2025/02/12
Vietnam's exports at risks as US tariffs loom
The shadow of tariffs hangs over Vietnam’s trade outlook.
13:40, 2025/02/11
Vietnamese Gov’t plans to revise up 2025 GDP growth target to over 8%
The revision of this year's GDP target will help lay the foundation for double-digit growth from 2026, propelling the country into a prosperous development phase.
13:50, 2025/02/10
Number of green buildings in Vietnam doubles in 2024
Vietnam now has a cumulative total of 559 green-certified buildings. This figure far exceeds the original targets set for green buildings—80 by 2025 and 160 by 2030.
20:15, 2025/02/05
Vietnam prepares for potential global trade wars: PM
If such a situation arises, it could disrupt supply chains and shrink Vietnam’s export markets.